How low can we go? 30 yr fixed at 3.75% with no fees...

NEW -> Contingent Buyer Assistance Program
hello said:
irvinehomeowner said:
Compressed-Village said:
30 years Jumbo is at 4.5 right now. Daily mortage rate reported.http://www.mortgagenewsdaily.com/mortgage_rates/daily.aspx

Rate are going up and prices slowly but surely still rising.
Click to expand...

Wait. What happen to that TI meme about rates going up and prices going down?

#altfacts
Click to expand...

Rates havent moved much.  Even if it did recently, why would you expect prices to change so suddenly?
Click to expand...

Because that's what other people say.

While I think there is some effect rates have on prices, I don't think it's as proportional as others feel they are. I've shown the math on this before.

Unless you are buying all cash, a low rate environment is more advantageous.
 
It'seems "Buy The Rumor, Sell The Fact Day". Rates often ramp higher before a Fed Funds Rate increase, then fall back a bit once the deed is done. What Yellin says afterwards will move the market more than anything else. Let's see what the real deal is around 3:00 PST, once things finally settle down.

My .02c

SGIP
 
So, yeah... post .25 increase in FF rate, if you locked yesterday it's time to renegotiate.

Don't believe the headlines as "THE BIGGEST DROP IN THE YEAR" might indicate. Note that it's for "the year" and not "all time". Most lenders improved rates by about .125% to in rare cases .25% for best available customers. It's nice to see. Is it sustainable? My sources say "unclear".

http://www.mortgagenewsdaily.com/consumer_rates/717877.aspx
 
Soylent Green Is People said:
So, yeah... post .25 increase in FF rate, if you locked yesterday it's time to renegotiate.

Don't believe the headlines as "THE BIGGEST DROP IN THE YEAR" might indicate. Note that it's for "the year" and not "all time". Most lenders improved rates by about .125% to in rare cases .25% for best available customers. It's nice to see. Is it sustainable? My sources say "unclear".

http://www.mortgagenewsdaily.com/consumer_rates/717877.aspx
Click to expand...
Am I seeing it correctly? Rates dropped by 1% today?
 
No.

On average about .125%. Here's a good chart on daily AVERAGE changes. Remember that these numbers do not subtract out purchase versus refinance, California versus Arkansas, Bank relationships versus Credit Union. You can only get exact figures once you've got an application in front of the lender will all of the key data provided - credit report and FICO score, purchase contract, down payment, closing date, etc.

http://www.mortgagenewsdaily.com/mortgage_rates/daily.aspx

My .02c

Soylent Green Is People
 
OCLuvr said:
Soylent Green Is People said:
So, yeah... post .25 increase in FF rate, if you locked yesterday it's time to renegotiate.

Don't believe the headlines as "THE BIGGEST DROP IN THE YEAR" might indicate. Note that it's for "the year" and not "all time". Most lenders improved rates by about .125% to in rare cases .25% for best available customers. It's nice to see. Is it sustainable? My sources say "unclear".

http://www.mortgagenewsdaily.com/consumer_rates/717877.aspx
Click to expand...
Am I seeing it correctly? Rates dropped by 1% today?
Click to expand...

Bloomberg Radio did a story last night about HSBC "lowering mortgage rates one point," but it was a publicity play. It sounds like they lowered the margin one point above the LIBOR index on certain ARMs to certain qualified clients.
 
Bullshiat .

The only color of influence is green.

If you have a low down payment, both the rate and APR will be higher than market. Race has nothing to do with this, but economics does. These stats do not factor things like this in.

No matter the.race, if you have only 1-2 active credit accounts, you'll often have a high FICO but a terrible rate because credit depth and FICO go into the loan rate. This also isn't part of any honest research on the subject of race and rates.

I closed a H-1B VISA holder from Africa last month. The customer had a 790 FICO one 1yr old credit card and 18 months of rent payments as a credit profile. The closing rate was higher because a Conforming Loan - Not a Prime Jumbo product was used because of credit depth issues. Was that discrimination or prudent risk analysis? Hard to say by some who see race issues under every nook and cranny. BTW, this borrower was from South Africa, as Blond and Blue eyed as they come.

My .02c

Soylent Green Is People
 
There is a high correlation with ethnicity and higher mortgage rates. Often these differences can be explained if the data included more depth. The new HMDA rule will attempt this. In the auto finance space, there is high correlation and causation between ethnicity and higher auto lending rates (also prices for autos and the unnecessary additional products auto dealers sell).

Where mortgage creditors often run into trouble, is with their discretionary pricing - meaning some creditors allow price adjustments (rate and/or fees can be lowered by the originator). These adjustments are often poorly documented. Cynics would say, "Of course they don't document why they lowered rates/fees!"
 
Dodd/Frank and subsequent rules by CFPB got rid of discretionary pricing.

It would be helpful to first run stats on Down/FICO/Property Type/Transaction Type / then Ethnicity and finally Rate instead of Rate/Ethnicity only. If there were two  purchases with exact same Down / FICO / Property Type / Transaction Type / then Ethnicity and it was found that a different rate was applied then that's a problem. Most sources use methodology that tries to solve for injustice first rather than accuracy.

Did you know most Middle Eastern buyers are classified as "White" because lenders Ethnicity choices are limited. Pakistanis are labled as Asian with Brazilians put in the "Non-Hispanic" then "White" bucket. Mortgage data is hazy at best and with agendas at play in mining what's there for clues, the results IMHO are untrustworthy.

Has there been discrimination? Yes. Is there still discrimination in lending? Yes, but hardly as widespread as it has been in the past.
 
Soylent Green Is People said:
Dodd/Frank and subsequent rules by CFPB got rid of discretionary pricing.

It would be helpful to first run stats on Down/FICO/Property Type/Transaction Type / then Ethnicity and finally Rate instead of Rate/Ethnicity only. If there were two  purchases with exact same Down / FICO / Property Type / Transaction Type / then Ethnicity and it was found that a different rate was applied then that's a problem. Most sources use methodology that tries to solve for injustice first rather than accuracy.

Did you know most Middle Eastern buyers are classified as "White" because lenders Ethnicity choices are limited. Pakistanis are labled as Asian with Brazilians put in the "Non-Hispanic" then "White" bucket. Mortgage data is hazy at best and with agendas at play in mining what's there for clues, the results IMHO are untrustworthy.

Has there been discrimination? Yes. Is there still discrimination in lending? Yes, but hardly as widespread as it has been in the past.
Click to expand...

Dodd-Frank does not prohibit discretionary pricing, and some creditors still practice it.
 
Discretionary Pricing used to mean if a 4.0% loan had a 1.0 point rebate, and a 4.125% loan had a 2% rebate, then the mortgage loan officer could price the loan at 4.125% and keep the rebate on the loan themselves at closing. This practice is now outlawed. There are still instances today where Mortgage Bankers and Mortgage Brokers deposit high rebates into a branch profitability pool, with a 6 to 12 month pay out, so technically, yes, Discretionary Pricing does still exist on a loan by loan basis, but as the CFPB begins to catch these "bonus pool" shops, they will soon dwindle away.

The issues that trip up Brokers is that the rebates must be disclosed openly, reducing the chances of Discretionary Pricing going unnoticed by the customer AND the bank funding the loan. This disclosure of rebate pricing was part of Dodd Frank and subsequent adjustments by the CFPB since the original DF rules were passed. The CFPB was created by Dodd Frank. Mortgage Bankers can hide larger rebates based on the structure of how the loans are funded, but they will price themselves out of the market. Price a Jumbo loan through a Mortgage Banker versus a traditional Bank and you'll notice a .125 to .25% price difference simply due to the Mortgage Bankers economic models. That practice cannot continue for very long before the MB is out of customers.  Banks can also hide large rebates, but given the pervasive regulatory oversight, any rebates are openly disclosed to customers who receives the full amount of the rebate at closing.

Are there some bad actors still out there? Here's one example:

http://www.ballardspahr.com/alertspublications/legalalerts/2016-07-08-cfpb-doj-settle-fair-lending-claims-of-alleged-redlining-other-discriminatory-practices.aspx

Thankfully the problem is very rare - not eliminated - but rare. Additional oversight is needed on pricing given that human nature - greed being a primary issue - still interferes with how loans are priced.

My .02c

Soylent Green Is People.
 
It's funny, the company I refinanced with last year sent me a flyer with today's rates compared to the rate I had with them, and they all showed an increase in payment.

I think it was an auto-gen/mail because why would I want to refinance into a higher rate?
 
irvinehomeowner said:
It's funny, the company I refinanced with last year sent me a flyer with today's rates compared to the rate I had with them, and they all showed an increase in payment.

I think it was an auto-gen/mail because why would I want to refinance into a higher rate?
Click to expand...

Cash-out refis are growing in popularity. Maybe they think you'll bite an additional 50 bps to extract $100K in equity?
 
irvinehomeowner said:
It's funny, the company I refinanced with last year sent me a flyer with today's rates compared to the rate I had with them, and they all showed an increase in payment.

I think it was an auto-gen/mail because why would I want to refinance into a higher rate?
Click to expand...

I believe a lender can be fined for non-compliance if they refi you to worse terms than you're current loan.  I'm guessing that during the underwriting period, your loan would be rejected if they find that you're better off with your current mortgage. 
 
Lenders can refinance a 2.75% 5/1 ARM into a 6% 30 year fixed - dumb, but follow me here... as long as there is a "benefit to borrower". Banks believe that it's less risky to have an ARM in an age of rising rates than a fixed payment so it's in the customers long term benefit to flip their loan to a fixed rate. Similarly someone may also refinance a $2,000 payment on a 30 year fixed at 3.5% to a $3,000 payment on a 3.5% 15 year fixed, because an earlier payoff is a "benefit to borrower".

A few posts back I said we'd soon see rates back in the mid 3's. If you're buying - not refinancing - have a sizeable down payment (25% or more), and perhaps a relationship with the bank, mid 3's are now possible.

If you purchased with a rate locked in December, January or February, send me a ping and we'll see where the market is for you today.

My .02c

Soylent Green Is People
Chairman, CEO, CFO, CIO, and Head Chef
Soylent Corporation
 
You must log in or register to reply here.
Back
Top